He has acquisition out of tastes, specifically, X, Y and you will Z merchandise. He ranks under control off needs like X > Y > Z. It means there was consistency and you will transitivity inside tastes.

Once we discussed, new indifference curve offers same level of fulfillment with various situations or combinations of one or two merchandise. A great, B, C, D and Age combos, in the Diagram 1 obviously reveals and you may clarifies it characteristic off a keen apathy bend.

The other characteristic of indifference curve is that higher the indifference curve higher will be the level of satisfaction. It has been shown in Diagram dos where IC, IC₁, IC₂ and IC₃ four indifference curves show different levels of satisfaction. From the point of level of satisfaction they can be put in this order of preference like IC₃ > IC₂ > IC₁ > IC respectively.

Apathy shape slope downwards on the right as the user must slow down the consumption of one to item (Y) in the event the the guy boosts the use of commodity X. To keep up the same number of satisfaction he’s got to improve the consumption of item X to the reduction of the intake of item Y. It could be viewed on the Drawing step three.

Apathy bend commonly none feel horizontal so you’re able to OX-axis, neither feel straight so you can OY-axis and it surely will not be upward inclining as the shown from inside the the Drawing 4.

The Diagram 4(A) shows that the slope of IC is horizontal where he has OY₁ of Y commodity only and consumption of X commodity is increasing with given money income. It does not give the same level of satisfaction.

The Drawing cuatro(B) means that the consumer was growing usage of Y and you will repaired use of X product however, it combination and additionally not bring your exact same quantity of satisfaction into given earnings.

Hence, we could say that exact same number of satisfaction is possible merely whenever an apathy bend mountains down to the right.

An indifference bend are convex into the provider by application of the chief out of shrinking e number of fulfillment a keen personal individual needs to eat more of X product in which he needs to give up more of Y product.

It indicates he favors X very first (I), Y next (II), and you will Z 3rd (III)

MRS is the rate of change in one commodity Y in relation to some unit change in commodity X. The rate of change is decreasing. The MRS_XY is decreasing due to operation of the principle of diminishing marginal rate of substitution of X commodity for Y commodity as given in Diagram 5 and the same has been explained in Table 2.

Throughout the drawing ?Y and ?X tell you the brand new reduction of product Y and increase inside product X whenever both are substituted when you look at the purchase to stay on the same number of fulfillment.

Diagram cuatro(C) signifies that the consumption of both X and Y commodities are expanding that is not you can easily with lingering income

Various other characteristic off apathy curve would be the fact a couple apathy curves never intersect each other because they show other quantities of satisfaction. An apathy curve reveals a comparable amount of fulfillment.

In the Diagram 6 two indifference curves IC and IC₁ have been shown. Before E point IC shows higher level of satisfaction. While after E-point IC₂ shows higher level of satisfaction. It is indeterminant. Hence we can say that two indifference curves never intersect each other because they show different levels of satisfaction.

Some other feature from apathy contour is that an indifference curve really does not touching OX-axis. If this really does thus, this means the guy eats massive amount of commodity X and you will no amount of commodity Y. If the apathy contour suits vertical range (OY-axis) then he usually consume a very variety away from commodity Y if you’re zero interracialpeoplemeet aansluiting level of item X.